GPN Financial Analysis

Analysis Date: 1/28/2025

Business Model

Global Payments generates revenue primarily through merchant payment solutions and issuer solutions

Revenue Sources

• Merchant Solutions (78% of revenue)
• Issuer Solutions (22% of revenue)

Revenue Distribution by Channel

• Merchant Solutions: $1.84B (78% of adjusted net revenue)
• Issuer Solutions: $529M (22% of adjusted net revenue)

Income Statement Analysis

• Revenue increased 5.1% year-over-year to $2.60B
• Operating income decreased 14.8% to $475.6M due to higher expenses
• Net income declined 12.9% to $315.1M

Capital Allocation

Company announced $600M accelerated share repurchase program and quarterly dividend of $0.25 per share. Board increased share repurchase authorization to $2.5B. Reached agreement to sell AdvancedMD for $1.125B.

Management Commentary

Delivered solid financial and operational performance in Q3

Reduced net leverage by nearly a quarter-turn to 3.3x

Strong adjusted free cash flow with 92% conversion rate

Overall Sentiment: Confident in execution and strategic initiatives while acknowledging macro uncertainty

Recommendation

Rating: Buy

Reason for Rating: Strong fundamentals and strategic repositioning support continued growth

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/28/2025, 6:12:33 AM